In a deal designed to expand its presence in the social media sphere, cloud computing company Salesforce.com announced Monday that it has agreed to acquire New York–based marketing firm Buddy Media for $689 million. 

Buddy Media’s board and shareholders have approved the acquisition, which Salesforce said it will finance with $467 million in cash, $184 million in Salesforce common stock and $38 million in vested Salesforce options and restricted stock. The deal is expected to close by the end of October and to increase Salesforce’s revenue by as much as $25 million by the second of the company’s current fiscal year, which ends on Jan. 31, 2013, according to the press release announcing the acquisition.

Launched in 2007, Buddy Media develops marketing campaigns via which such companies as Ford Motor Co., Hewlett-Packard Co., L’Oreal and Mattel Inc. target potential customers on Facebook, LinkedIn and Twitter. In addition to helping their clients craft social media–friendly messages, the company helps the companies monitor their social media efforts.

The Buddy Media acquisition comes a little more than a year after San Francisco–based Salesforce, which provides its customers with business software applications over the Internet, acquired Radian6, which is also geared toward helping businesses measure their effectiveness on sites like Facebook and Twitter.

Salesforce is being represented in the matter by a Wilson Sonsini Goodrich & Rosati team led by San Francisco–based M&A partner Michael Ringler. Information about other Wilson Sonsini lawyers working on the deal was not immediately available. Burke Norton serves as Salesforce’s executive vice president and chief legal officer.

Buddy Media turned to a Lowenstein Sandler team that includes New York–based members Edward Zimmerman, who chairs the firm’s tech group, and Marita Makinen, who chairs its M&A practice, and Roseland, N.J.–based member Ethan Skerry. Skerry previously represented Buddy Media in connection with the company’s February acquisition of Facebook ad-buying tool Brighter Option Ltd., and its May acquisition of Spinback, a company the provides social commerce and analytic platform.

Natalie Stein serves as Buddy Media’s general counsel.

Elizabeth Hampton is a reporter with The Am Law Daily, a Recorder affiliate.